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PROBLEM #1 On January 1, 2019, MM Company reported the following property, plant and equipment: Land, P1,500,000; Building, P4,000,000; and Leasehold improvements, P500,000. The following transactions occurred during the current year: a.) Land site #621 was acquired for P3,000,000. Additionally, to acquire the land, the entity paid P60,000 commission to a real estate agent. Also, cost of P15,000 was incurred to Cost of land $ 621 clear the land for the intended use but not to make room for the construction of a new 3,000,060 building. During the course of clearing the land, timber and gravel were recovered and 60, 000 sold for P5,000. b.) Land site #622 with a building, was acquired for P4,000,000. The closing statement 15,000 indicated that the land fair value was P2,500,000 and the building fair value was 3015,000 P1,500,000. Shortly after acquisition, the building was demolished at a cost of P300,000 to make room for the construction of new building. c.) A new building was constructed for P5,000,000 plus the following costs: Excavation fee P 50,000 Architectural design fee 150,000 Building permit 40,000 Imputed interest on funds used during construction 500,000 d.) Land site #623 was acquired for P2,000,000 and was classified as held for sale. e.) Extensive work was done to a building occupied by the entity under a lease agreement that expires on December 31, 2026. The total cost of work was P1,250,000 which consisted of the following: Painting of ceiling P 100,000 Electrical work with useful life of 10 years 350,000 Construction of extension to current working are with useful life of 800,000 15 years The lessor paid one half of the cost incurred in connection with the extension to the current working area. f.) During December 2019, cost of P650,000 was incurred to improve leased office space. The related lease will terminate on December 31, 2021 and is not expected to be renewed. REQUIRED: Compute for the cost of the following: a) Land b) Building c) Leasehold improvements